Michigan City officials raise concerns over proposed Indiana taxation on localities

Michigan City officials are raising alarms over potential revenue losses as state lawmakers consider a new taxation bill that could significantly impact local funding. During a recent workshop on March 14, 2025, city council members discussed the implications of House Bill 1402, which could lead to property tax losses ranging from $5 million to $12 million for Michigan City alone.

Council members expressed frustration over the proposed shift of financial burdens to local governments without providing them the means to raise revenue. The discussions highlighted concerns that cities, counties, and schools across Indiana may face similar challenges, as the bill appears to impose new taxes while limiting localities' ability to generate funds.

One key point of contention is the linkage of the wheel tax with the excise tax, which council members noted complicates the financial landscape for residents and businesses. Currently, municipalities cannot separate these taxes, which has led to confusion and dissatisfaction among local leaders.

Additionally, the council discussed the need for better enforcement of existing ordinances, particularly regarding heavy truck traffic on Michigan Boulevard. Residents have voiced concerns about trucks using local roads as shortcuts rather than accessing local businesses, which further complicates road maintenance and safety.

As the city prepares to navigate these potential changes, officials are urging residents to stay informed and engaged. The council plans to continue monitoring the situation closely, with hopes of advocating for fairer taxation policies that support local needs. The outcome of this legislation could have lasting effects on Michigan City's financial health and infrastructure development.